US Congress Research Body Highlights Government Control on Chinese Companies Like TikTok

[ABS News Service/28.08.2026]

· A new Congressional Research Service (CRS) report examines U.S. national-security concerns over Chinese-linked digital platforms operating in the United States, with TikTok as the primary focus.

· TikTok has around 82 million daily active U.S. users. Its parent company, ByteDance, has significant ties to China, raising concerns over access to U.S. user data, algorithms, technology and content policies.

· Under P.L. 118-50 (2024), ByteDance was required to complete a “qualified divestiture” of TikTok. The law also gives the President authority to address other foreign-adversary-controlled digital applications.

· Under the divestiture arrangement approved by President Trump, TikTok's U.S. operations are run through a joint venture majority-owned and controlled by U.S. persons, while ByteDance and its affiliates retain a 19.9% stake. TikTok is also expected to license a copy of its algorithm from ByteDance, which retains ownership of the underlying intellectual property.

· The CRS identifies several other Chinese-linked platforms operating in the U.S., including WeChat, Temu, Shein, Alibaba/Alipay, Baidu, Binance.US, Tencent-linked gaming businesses, and Zoom.

· The report highlights market-access asymmetry: Chinese digital companies can operate in the U.S., while U.S. technology and internet companies face significant restrictions in China.

· China has introduced laws and policies—including its National Security Law, Cybersecurity Law and Data Security Law—that can require companies to protect or provide information to Chinese authorities and impose restrictions on data transfers.

· The Chinese Communist Party (CPC) also requires companies to maintain Party committees, while the Chinese government has indirect ownership or board representation in some technology companies.

· U.S. policymakers have already taken measures against Chinese-linked digital firms, including government-device TikTok bans, CFIUS divestiture actions and restrictions on certain Chinese-connected technologies.

· Key issue for Congress: whether continued ByteDance involvement in TikTok and other Chinese technology, data and software ties create national-security risks despite U.S. ownership or operational structures.

[Report]